Dani Pedrosa has ended speculation over a move to Yamaha by signing a new two-year extension with Honda.

The Spaniard had been linked with a switch to the Movistar team as Valentino Rossi's team-mate but on Monday, Honda squashed the rumours, announcing Pedrosa would remain part of the Repsol squad until 2018 at least.

News of the deal leaves the door open for Maverick Vinales to join Rossi at Yamaha.

"I'm very happy to be able to announce my renewal with the Repsol Honda Team," said Pedrosa, who will reach a milestone of 250 Grand Prix races this weekend at Mugello.

"I'm very grateful to Honda for the trust they've shown in renewing with me for an additional two years. I think it's best for me to continue with the company I was with at my very first race.

"I'm happy that the negotiations have been quick, and now I can just focus on racing," added the 30-year-old.

"I want to give 100 per-cent this weekend at the Italian GP."

Shuhei Nakamoto, HRC Executive Vice President, said he valued Pedrosa's loyalty to the corporation.

"We're very pleased to renew our contract with Dani, and we really appreciate his loyalty to Honda and HRC," he said

"We've been working together for many years, but we always see in Dani the same passion and dedication. His experience is very important for helping our technicians to develop our bike, and we'll do our best to help him to demonstrate all his talent!"

Pedrosa has been a Honda rider for his entire career, beginning with his 2001 Grand Prix debut in the then 125cc class.

A 125cc and double 250cc World Champion, Pedrosa entered MotoGP with the Repsol Honda Team in 2006 and has finished title runner-up on three occasions (2007, 2010, 2012) and third an additional three times (2008, 2009, 2013).

He has achieved more podium finishes for the Honda factory than any other rider, with a total of 142, including 51 victories, just three fewer than Mick Doohan's Honda record.

Pedrosa heads to this weekend's Italian Grand Prix in fourth position in the championship.